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Basic Loss Payment (Council Compulsory Purchase)

Basic Loss Payment (Council Compulsory Purchase)

Council have purchased 2 flats from client under Compulsory Purchase Order

CGT due on sale.

They have also offered % of sale price, for "Loss of Rental Income". This additional payment is around 7K.

Does anyone know if this Loss or Compensation payment is subject to CGT, as not come across it before, or taxable as Schedule A?

Thanks,Caron

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10th Nov 2010 15:26

Compensation

My gut feeling is that any compensation for loss of income will defintely not be CGT. However, if the calculation is based on a % of the sale price then it raises doubts in my mind. Can you clarify further what aspects were taken into account in arriving at the figure?

 

Curiously enough I had just come to this site to search for a similar cgt vs sch A answer on the matter of "basic and occupier loss" of which I am certain is CGT as it relates to 10% of the value.

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